§ Dr. McDonald
asked the Chancellor of the Exchequer what would be the cost in terms of loss of revenue to the Exchequer if a band of earned income tax relief were introduced for standard rate taxpayers only which reduced the standard rate of tax by three-sevenths for the first £500 of taxable income.
§ Mr. Robert Sheldon
, pursuant to his reply [Official Report, 15th February 747W 1977, Vol. 926, c. 216], gave the following information:
It would not be practicable to restrict such a relief to those paying tax at the basic rate only. If the relief were given to all taxpayers with earned income, the cost for 1976–77 would be about £1,600 million of which about £1,450 million would be relief to those paying at the basic rate only.